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Marketing costs are not supposed to appear on balance sheet. I don't really watch this company but if I remember correctly, their way of doing accounting was t
by lubos 15y ago
Marketing costs are not supposed to appear on balance sheet.
I don't really watch this company but if I remember correctly, their way of doing accounting was to show all received money from customers as income instead of liabilities since they were collecting half of it on behalf of vendors.
They were simply inflating their revenue but it's not like it matters, because profit (loss) would be always the same regardless.
- dailyllama 15y agoHe was referring to ACSOI or whatever it was called, that tried to show profitability by subtracting out marketing costs, in a marketing-heavy organization. You're referring to Groupon's decision to treat cash they collect on behalf of merchants (which should be treated as financing cash flows) as operational cash flows, thus making their cash flow look reasonable when it's actually horrid.
- deleted 15y ago[deleted]